CC&Rs Harbortown Homeowners Association San Mateo

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1 CC&Rs Harbortown Homeowners

2 NOTICE: If this document contains any restriction based on race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, familial status, marital status, disability, genetic information, national origin, source of income as defined in subdivision (p) of Section 12955, or ancestry, that restriction violates state and federal fair housing laws and is void, and may be removed pursuant to Section of the Government Code. Lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status.

3 HARBORTOWN HOMEOWNERS' ASSOCIATION C/o Sprague & Associates 1710 S. Amplilett Blvd., Suite 301, San Mateo, Ca / Fax 650/ / sprague@netwiz.net NOTICE If this document contains any restriction based on race, color, religion, sex, sexual orientation, familial status, marital status,. disability, national origin, source of income as defined in subdivision (p) of Section 12955, or ancestry, that restriction violates state and federal fair housing laws and is void, and may be removed pursuant to Section of the Government Code. Lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status.

4 RECORDING REQUESTED BY: :01am 09120/06 DR Fee: Count of pages 69 Recorded in Official Records County of San Mateo Assessor-County Clerk-Recorder WHEN RECORDED MAIL TO: HARBORTOWN HOMEOWNERS ASSOCIATION SAN MATEO do BERDING & WElL LLP 3240 Stone Valley Road West Alamo, CA (SPACE ABOVE THIS LINE FOR RECORDER'S USE) TABLE OF CONTENTS TO AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF HARBORTOWN HOMEOWNERS ASSOCIATION SAN MATEO Page Number RECITALS OF BACKGROUND FACTS, DECLARATIONS I ARTICLE I DEFINITIONS Additional Charges Annual Assessments Architectural Committee Articles Assessments Association Balcony Board of Directors Bylaws Civil Code Common Area Condominium Condominium Building Condominium Common Area Condominium Plan Contract Purchaser/Contract Seller Corporations Code Declaration Development 4 Herding & Weil LLP 3240 Stone Valley Road West Alamo, California Harbortown Homeowners AMENDED AND RESTATED DECLARATION

5 1.20 Enforcement Assessment First Mortgage/First Mortgagee Garage Governing Documents Institutional Mortgagee Lot Maintenance s 1.27 Member Member in Good Standing Mortgage Mortgagee Owner s 1.32 Patio Recreational Common Area Reimbursement Assessment Repair Replacement Resident Restricted Common Area Rules Special Assessment Subdivisions Map/Map Total Voting Power Unit 7 ARTICLE 2 HOMEOWNERS ASSOCIATION Management and Operation; Bylaws Membership; Bylaws Voting Association Rules 8 ARTICLE 3 PROPERTY SUBJECT TO THIS DECLARATION Legal Description Classification of Property Ownership of Condominium Proportionate Undivided Interests Are Permanent No Separate Conveyance of Undivided Interests Limitation on Partition Notice of Airport in Vicinity Notice of San Francisco Bay Conservation and Development Commission Jurisdiction Annexation New Capital Improvements Sale or Transfer of Association Property Powerto Sell, Transfer, or Pledge Recreational Common Area 10 Berding & Well LLP 3240 Stone Valley Road West Alamo, California / Harbortown Homeowners ii AMENDED AND RESTATED DEcLARATION

6 3.13 Custodian Unit.10 ARTICLE 4 COMMON AREA AND EASEMENTS Use of Common Area Generally Delegation of Use Notice Regarding Household Members, Tenants, or Contract Purchasers Common Area Construction Mechanic's Lien Against Common Area Easements in General 12 4,7 Easements for Restricted Common Area Owners Non-Exclusive Easements Over Recreational Common Area Owners' Easements for Maintenance of Utilities Owners' Right to Full Use of Shared Services Easements of Encroachment Association's Utility Easements Power to Grant Utility Easements over Condominium Common Area 14 ARTICLE 5 USE RESTRICTIONS Residential Use Rental of Condominiums Restriction on Businesses; Indemnification Regarding Businesses Offensive Conduct, Nuisances, Noise Use of Common Area Conditions Affecting Insurance Requirement of Architectural Approval Window Coverings Sports Apparatus Mailboxes and Exterior Newspaper Tubes Outside Drying and Laundering Satellite Dishes and Antennas Animals Limitation on Pets ResponsibilityforPets Indemnification Regarding Pets Pet Rules Trash Disposal Signs, Banners, Flags Vehicles Garage Parking Common Area Parking Parking Enforcement Garages 20 Berding & Weil LIP 3240 Stone Valley Road West Alamo, CalifornIa Harbortown Homeowners ii AMENDED AND RESTATED DECLARATION

7 5.21 Lagoon Area Restrictions 20 ARTICLE 6 RENTING OR LEASING Requirements for Renting No Transient Rentals Association As Third Party Beneficiary Indemnification Regarding Tenant's Actions 21 ARTICLE 7 ARCHITECTURAL APPROVAL Architectural Approval Required Interior Decorations Architectural Committee Architectural Rules Written Request for Board Approval Fees Decisions To Be Made in Good Faith Decisions In Writing Appeal by Internal Dispute Resolution Commencement of Approved Work Completion Inspection of Completed Work Notice of Non-Conformity Failure to Remedy Non-Conformity Non-Waiver Disclaimerof Liability Compliance With Governmental Requirements 26 ARTICLE 8 ASSESSMENTS AND LIENS Covenant of Owner Association's Power to Collect Assessments Are A Personal Obligation Obligation Runs with the Land Owner's Liability After Transfer Creation of Lien Lien is Continuing Priority of Liens Purpose of Assessments Funds to Be Held in Association's Name Funds Held in Trust for Owners Authority of the Board to Levy Assessments 28 Berdlng & Well U.P 3240 Stone Valley Road West Alamo, CalifornIa / Harbortown Homeowners iv AMENDED AND RESTATED DEcLARATION

8 8.7 Annual Assessment Calculation of Estimated Requirement Allocation of Annual Assessment Notice of Annual Assessment Application of Surplus Funds Permitted Increases in Annual Assessment Permitted Decreases in Annual Assessment Special Assessments Purpose of Special Assessments Permitted Amount of Special Assessments Allocation of Special Assessments Notice of Special Assessment Reimbursement Assessments Enforcement Assessments Failure to Fix Assessments No Offsets DelinquentAssessments Enforcement by Action at Law or Foreclosure Pie-Lien Notice Priorto Recording a Lien Owner's Right To Discuss Payment Plan Notice of Delinquent Assessment Delinquent Assessments of Less than $1, Initiating Foreclosure Amount Due and Payable Notice of Initiating Foreclosure Power of Sale Right of Redemption Assignment of Rents as Security for Payment Remedies Are Cumulative Certificate of Satisfaction and Release of Lien Subordination to Lien of First Mortgage Voluntary Conveyance Waiver of Exemptions Property Exempt From Assessments 36 ARTICLE 9 MAINTENANCE OF PROPERTY Association Responsibility for Maintenance Common Area Maintenance and Services 36 Berding & Well ISP 3240 Stone Valley Road West Alamo, CalIfornia ) Harbortown Homeowners v AMENDED AND RESTATED DECLARATION

9 9.1.2 Concealed Damage Authority for Entry of Unit or Restricted Common Area Limitation of Association Liability Owner Responsibility for Maintenance Maintenance of Units Maintenance of Restricted Common Area Structural Integrity of Buildings Board Discretion Limitation of Owner Liability 39 ARTICLE 10 INSURANCE Insurance Coverage to be Maintained by Association Insurance Carriers Insurance Premiums Allocation of Deductibles Annual Review of Policies Insurance to Be Maintained By Owner Copies of Policies Adjustment of Losses 42 ARTICLE 11 DAMAGE OR DESTRUCTION OF BUILDINGS; CONDEMNATION Damage to Improvements Destruction of Improvements CondemnationAward Notice to Mortgagees Reconstruction of Remaining Units Rights to Distributions of Insurance Proceeds or Condemnation Awards 44 ARTICLE 12 RIGHTS OF MORTGAGEES NoticeofDefault Notice to FHLMC Manner of Notice by Association No Right of First Refusal Limitations on Certain Actions By Association Right to Inspect and to Receive Financial Statements 46 ARTICLE 13 ENFORCEMENT; NOTICE; HEARINGS Violations as Nuisance Violation of Law is a Violation of the Declaration 46 Berding & Well LLP 3240 Stone Valley Road West Alamo, California Harbortown Homeowners vi AMENDED AND RESTATED DEcLARXrI0N

10 13.3 Owner Responsibility for Conduct and Damages No Avoidance Enforcement Rights Are Cumulative Injunctions Limitation on Association's Disciplinary Rights Imposing Sanctions Loss of Good Standing Suspension of Other Rights Monetary Penalties Monthly Sanctions for Continuing Violations Reimbursement Assessment Not a Sanction Investigation of Complaints Written Notice of Violation Notices: Content, Delivery Hearings Called By the Board; Executive Session; Open Meeting OwnerRequestforHearing Notice of Hearing Decisions Enforcement by Association in Emergency Situations Definition of Emergency Situation Immediate Corrective Action Internal Dispute Resolution Fair, Reasonable, and Expeditious Procedure Statutory Default Procedures Alternative Dispute Resolution May Also Apply Annual Description of Internal Dispute Resolution Process Alternative Dispute Resolution Before Initiating Lawsuit When ADR Applies Statutory ADR Process Annual Summary of Alternative Dispute Resolution Process Non-Waiver Costs and Attorneys' Fees 52 ARTICLE 14 AMENDMENT Amendments Generally Amendments Must Be Recorded 53 Berding & Wail LLP 3240 Stone Valley Road West Alamo, CalifornIa / Harbortown Homeowners vii AMENDED AND RESTATED DECLARATION

11 ARTICLE 15 GENERAL PROVISIONS Headings Severability Liberal Construction Amendment to Referenced Statutes; Time for Performance Number; Gender Easements Reserved and Granted Power of Attorney Term 54 EXHIBIT A (Recital Paragraph A) List of Previously Recorded Declarations Superseded by this Amended and Restated Declaration EXHIBIT B (Section 1.14) Schedule of Owners' Undivided Ownership Interests in Common, in Condominium Common Area for Each Phase and Lot of the Development Boiling & Well LLP * 3240 Stone Valley Road West Mama, CalifornIa Harbortown Homeowners viii AMENDED AND RESTATED DEcLARATION

12 AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF HARBORTOWN SAN MATEO This Amended arid Restated Declaration of Covenants, Conditions and Restrictions is made on the date set forth at the end of this document by HARBORTOWN HOMEOWNERS ASSOCIATION SAN MATEO, a California nonprofit mutual benefit corporation (referred to in this document as the "Association ). RECITALS OF BACKGROUND FACTS; DECLARATIONS A. The Association is the successor in interest to Mariners Isle Associates, a limited partnership, which, as Dectarant, executed that certain Harbortown Enabling Declaration Establishing A Plan For Condominium Ownership, dated May 5, 1978, and recorded on May 16, 1978, in Reel 7744, Images 637, at seq., as Instrument/Series No AM, Official Records of San Mateo County, State of California (referred to in this document as the '1978 Declaration"). The Development was developed in thirteen (13) phases. Amendments and declarations of annexation to the 1978 Declaration were recorded on various dates as set forth in Exhibit A. B. The 1978 Declaration as amended establishes certain limitations, easements, covenants, restrictions, conditions, liens, and charges which run with and are binding upon all parties having or acquiring any right, title, or interest in that certain real property located in the County of San Mateo, State of California, and more particularly described as follows: Lots 1 to 13, inclusive, as described on that certain subdivision map entitled "Harbortown," which was filed for record in the Office of the Recorder of San Mateo County, California, on March 9, 1978, in Book 97, of Maps, page(s) 3 through 8, inclusive; C. The Members, constituting at least two-thirds (2/3%) of the Members of the Association, desire to amend, modify, and otherwise change the 1978 Berding & Well LIP 3240 Stone Valley Road West Alamo, California ( Harbortown Homeowners 1 AMENDED AND RESTATED DECLARATION

13 Declaration as amended pursuant to Article VIII, Section 8.4 thereof, and do hereby declare that the 1978 Declaration as amended, be and it is hereby AMENDED AND RESTATED IN ITS ENTIRETY as set forth in the within Amended and Restated Declaration of Covenants, Conditions and Restrictions of Harbortown Homeowner ; D. IT IS FURTHER HEREBY DECLARED that all of the real property described in Recital Paragraph B constitutes a condominium project within the meaning of section 1351(f) of the California Civil Code. E. IT IS FURTHER HEREBY DECLARED that all of the real property described in Recital Paragraph B is and shall be held, owned, operated, managed, conveyed, hypothecated, encumbered, leased, used, occupied, and improved subject to the following covenants, conditions, and restrictions set forth herein, all of which are declared and agreed to be in furtherance of a plan and purpose of protecting, preserving, and enhancing the value, desirability, and attractiveness of the said real property and every part thereof, and of fostering the development, management, improvement, enjoyment, and sale of the said real property and any part thereof. F. IT IS FURTHER HEREBY DECLARED that all of the covenants, conditions, and restrictions set forth herein shall constitute enforceable equitable servitudes as provided in Civil Code section 1354, shall constitute covenants that shall run with the said real property, and shall be binding upon and inure to the benefit of each Owner of any portion of the said real property or the owner or holder of any interest or estate therein and their heirs, successors, and assigns. ARTICLE I DEFINITIONS 1.1 Additional Charges. "Additional Charges" shall mean all costs, fees, charges, and expenditures, including but not limited to interest, late charges, attorneys' fees, recording and filing fees, and all other costs actually incurred by the Association in collecting and/or enforcing payment of Assessments. 1.2 Annual Assessments. "Annual Assessments" shall have the meaning set forth in Section Architectural Committee. "Architectural Committee" shall mean the Committee appointed pursuant to Article 7 of this Declaration. 1.4 Articles. "Articles" shall mean the Amended Articles of Incorporation of Harbortown Homeowners, as they may be Berding & Well LU' 3240 Stone Valley Road West Alamo, CalIfornia Harborlown Homeowners 2 AMENDED AND RESTATED DEcLARATION

14 amended from time to time, and as filed with the Office of the Secretary of State of California. 1.5 Assessments. "Assessments" shall mean any or all of the following: Annual Assessments, Special Assessments, Reimbursement Assessments, and Enforcement Assessments. 1.6 Association. "Association" shall mean Harbortown Homeowners, a California nonprofit mutual benefit corporation, its successors and assigns. 1.7 Balcony. See Section Board of Directors. "Board of Directors" or "Board" shall mean the governing body of the Association. 1.9 Bylaws. "Bylaws" shall mean the Amended Bylaws of the Association as they shall be duly adopted by the Board of Directors and the Members and any duly-adopted amendments thereof Civil Code. "Civil Code" shall mean the California Civil Code as amended from time to time Common Area "Common Area" shall mean all of the property comprising the Development but excluding the Units. The Common Area consists of Condominium Common Area and Recreational Common Area. Some portions of the Common Area are designated as Restricted Common Area Condominium. "Condominium" shall mean an estate in real property as defined in California Civil Code sections 783 and 1351(0, consisting of an undivided interest in common in all or any part of the Common Area, and a separate fee interest in a Unit together with all easements or other interests in the Development appurtenant thereto Condominium Building. "Condominium Building" shall mean each of the twenty-six (26) residential buildings, and each of the garage buildings within the Development Condominium Common Area. "Condominium Common Area" shall mean, with respect to each Condominium Building, all of the property within the outside perimeter walls, excluding Patios and excluding the Units, and excluding the earth below and the sky above. The Condominium Common Area includes, without limitation: the outside perimeter walls, decks, bearing walls, columns, girders, beams in cathedral ceilings, subfloors, unfinished floors, roofs, and foundations; chimneys and flues, Berding & Well LIP 3240 Stone Valley Road West Alamo, California Harbortown Homeowners 3 AMENDED AND RESTATED DECLARATION

15 reservoirs, tanks, pumps, motors, ducts, and chutes; conduits, pipes, plumbing, wires, utility meters and other utility installations (except the outlets thereof when located within the Unit, and except to the extent any of the foregoing constitute pad of the Unit or exclusively serve a particular Unit as defined in Section 1.43), required to provide power, light, telephone, gas, water, sewerage, and drainage; exterior sprinklers and sprinkler pipes; and cable television installation. The Condominium Common Area with respect to each Lot is owned in equal undivided shares by the Owners of Units within the respective Lots, in the proportions set forth in Exhibit B Condominium Plan. "Condominium Plan" or"plan" shall mean any of the plans for the respective phases of the Development as included in and recorded as pad of the Enabling Declaration or the Declaration of Annexation for the phase (which documents are listed in Exhibit A) and any subsequent amendment to such plans Contract Purchaser/Contract Seller. "Contract Purchasee' and "Contract Seller" shall mean the purchaser and the seller, respectively, under an installment land contract in which title to the property is transferred after the final installment payment is made Corporations Code. "Corporations Code" shall mean the Caiifornia Corporations Code as amended from time to time Declaration. "Declaration" shall mean this Amended and Restated Declaration of Covenants, Conditions and Restrictions of Harbortown Homeowners, recorded in the Office of the County Recorder of San Mateo County, California, and any duly recorded amendments thereof Development. "Development" shall mean all of the real property described in this Declaration which comprises the Harbortown San Mateo condominium project, including all structures and other improvements located at any time upon said real property Enforcement Assessment. "Enforcement Assessment" shall have the meaning set forth in Section First Mortgage/First Mortgagee. "First Mortgage" shall mean a Mortgage that has first priority over any other Mortgage. "First Mortgagee" shall mean the beneficiary under a First Mortgage Garage. 'Garage" shall mean each space on any of the Condominium Plans designated "G" followed by a Unit number designation. Each Garage is part of a Unit as defined in Section Berding & Weil LLP 3240 Stone Valley Road West Alamo, California / Harbortown Homeowners 4 AMENDED AND RESTATED DEcLARATiON

16 1.23 Governing Documents. "Governing Documents" shalt mean the Articles, Bylaws, Declaration, and Rules Institutional Mortgagee. "Institutional Mortgagee" shall mean any bank, savings and loan association, insurance company, or other financial institution holding a recorded First Mortgage on any Unit Lot. "Lot" shall mean any of the lots numbered 1 through 13, inclusive, as shown on the Subdivision Map Maintenance. "Maintenance" or to "maintain" (whether the term is capitalized or not) shall mean the act of caring for property and keeping it in its existing state, preserving it from failure or deterioration, including painting, caulking, cleaning, and minor, non-structural upkeep Member. "Member" shall mean an Owner Member in Good Standing. "Member in Good Standing" shall mean a Member of the Association who is current in the payment of all Assessments and Additional Charges imposed in accordance with the Governing Documents and who is in compliance with all of the provisions of the Governing Documents Mortgage. "Mortgage" shalt mean a deed of trust as well as a mortgage in the conventional sense Mortgagee. "Mortgagee" shall mean a beneficiary under a deed of trust as well as under a Mortgage Owner. "Owner" shall mean the record owner, whether one or more persons or entities, of the fee simple title to any Condominium, including Contract Sellers but excluding Contract Purchasers, and excluding those persons having such interest merely as security for the performance of an obligation Patio. See Section Recreational Common Area. "Recreational Common Area" shall mean all of the property comprising the Development, except the Units and the Condominium Common Area. Patios are part of the Recreational Common Area. The Recreational Common Area is owned by the Association Reimbursement Assessment. "Reimbursement Assessment" shall have the meaning set forth in Section Berding & Well LLP 3240 Stone Valley Road West Alamo, California / Harbortown Homeowners 5 AMENDED AND RESTATED DECLARATION

17 1.35 Repair. "Repair" (whether the term is capitalized or not) shall mean the minor restoration of property that is torn, broken, or otherwise damaged, or has sustained wear, tear, or deterioration such that minor restoration is necessary Replacement. "Replacement" or to "replace" (whether the term is capitalized or not) shall mean substantial reconstruction, restoration, or substitution of the whole or a substantial part of property that has been damaged or destroyed through usage or through hazard or catastrophe such that it is no longer useable or serviceable in its current condition Resident. "Resident" shall mean any person who resides in a Unit within the Development whether or not such person is an Owner Restricted Common Area. "Restricted Common Area" shall mean the following described portions of the Common Area which are set aside and allocated for the exclusive use of the Owner of the Unit to which they are appurtenant as designated on the Condominium Plan: Balcony, designated "B" followed by the Unit number; and Patio, designated "P" followed by the Unit number. An exclusive easement to such Restricted Common Area may be specifically granted in each individual grant deed conveying a Unit; however, the failure of any deed to set forth such grant of easement shall not invalidate the exclusive easement granted herein Rules. "Rules" shall mean the policies, rules, and regulations governing the administration, management, operation, use, and occupancy of the Development, including the use of the Common Area and facilities, the personal conduct of Owners and Residents, members of their household, pets, tenants, invitees, and guests within the Development, enforcement of the Governing Documents, and any other mailer which is within the jurisdiction of the Association, as adopted, published, or amended by the Board from time to time and subject to applicable law including Civil Code section et seq Special Assessment. "Special Assessment" shall have the meaning set forth in Section Subdivisions Map/Map. "Subdivisions Map" or "Map" shall mean that certain subdivision map entitled "Harbortown, recorded on March 9, 1978, in Book 97 of Maps, at Pages 3 through 8, inclusive, in the official records of San Mateo County, California Total Voting Power. "Total Voting Power" shall mean the total number of votes of all Members entitled to vote at a particular time, calculated on the Oerdlng & Weil LIP 3240 Stone Valley Road West Alamo, California / Harbortown Homeowners 6 AMENDED AND RESTATED DEcLARATION

18 basis of one vote for each Unit, excluding any Units as to which an Owner is not then a Member in Good Standing Unit. "Unit' shall mean the elements of a Condominium that are not owned in common with the Owners of other Condominiums within the Development, which Units are shown as separately designated and numbered areas on the Condominium Plan. Each Unit contains a Garage which may be a separate space on the Condominium Plan bearing the same Unit number designation. Each Unit consists of the interior space bounded by and contained within the interior unfinished surfaces of the perimeter walls, floors, ceilings, windows and window frames, doors, door frames and trim, of each of such interior spaces; provided, however, that bearing walls located within the aforesaid boundaries of a Unit (except for the finished surfaces thereof) are Common Area and not part of the Unit. Each Unit includes all doors and door frames, and windows, window assemblies, and window frames to the Unit and the utility installations, fixtures, and appliances located within its boundaries and/or which exclusively serve the Unit including, without limitation: oven, range and fans, garbage disposal unit; dishwasher unit, and other kitchen appliances; hot water heaters; clothes washers and dryers: space heaters; lighting fixtures; heating conduits; any air conditioning units, condensers, and equipment; smoke detectors; bathtubs, sinks and wash basins, shower stalls, toilets, and other plumbing fixtures; and interior partitions which are located entirely within the boundaries of the Unit they serve. The firebox is part of the Unit, but the chimney and flue are Condominium Common Area. Soffits, exposed beams, and furred down ceilings are Condominium Common Area. Each Unit includes both the portion of the building so described and the air space so encompassed. In interpreting deeds, the Declaration, and the Condominium Plan, it shall be conclusively presumed that the then existing physical boundaries of a Unit are its boundaries, rather than the metes and bounds or other description expressed in the deed, the Declaration, or the Condominium Plan, regardless of any settling or lateral movement of buildings and regardless of minor variance between the boundaries shown on the deed, the Declaration, or the Condominium Plan and the actual existing physical boundaries. There are 312 Units in the Development. ARTICLE 2 HOMEOWNERS ASSOCIATION 2.1 Management and Operation; Bylaws. The Association is an "association" as defined in Civil Code section 1351(a) and as such shall have the power and the authority to manage and operate the Development in accordance with the Governing Documents and the provisions of applicable law. The Association shall have all of the powers set forth in the Governing Documents together with general power to do any and all things that a Berding & Well LIP 3240 Stone Valley Road West Alamo, CalifornIa Harbortown Homeowners 7 AMENDED AND RESTATED DECLARATION

19 nonprofit mutual benefit corporation may lawfully do under the laws of the State of California, subject only to the limitations upon the exercise of such powers as are expressly set forth in the Governing Documents. Provisions concerning the operation of the Association as a nonprofit mutual benefit corporation are set forth in the Bylaws. 2.2 Membership; Bylaws. Every Owner of a Condominium shall be a Member of the Association and shall remain a Member thereof until such time as his or her Condominium ownership ceases for any reason. Membership shall be appurtenant to and may not be separated from ownership of a Condominium and shall not be transferred, encumbered, pledged, alienated, or otherwise hypothecated in any way, except in connection with the sale or encumbrance of the Condominium to which it is appurtenant. 2.3 Voting. Only Members in Good Standing shall be entitled to vote and, only one vote shall be cast for each Condominium as more particularly set forth in the Bylaws. 2.4 Association Rules. Subject to applicable law including Civil Code section S seq. regarding notice and procedures, the Board shall have the power and the authority to establish, promulgate, amend, repeal, and enforce Rules. ARTICLE 3 PROPERTY SUBJECT TO THIS DECLARATION 3.1 Legal Description. The property subject to this Declaration and to the jurisdiction of the Association is described in Recital Paragraph B. 3.2 Classification of Property. The property subject to this Declaration is a condominium project. All of the property subject to the Declaration is divided into the following categories: (a) (b) (c) (d) Recreational Common Area, Condominium Common Area, Restricted Common Area, Units, and (e) a Custodian Unit, if any, pursuant to Section Ownership of Condominium. Ownership of each Condominium within the Development shall include: (i) a designated Unit as defined in Section 1.43 Berding & Weil LLP 3240 Stone Valley Read West Alamo, California Harbortown Homeowners 8 AMENDED AND RESTATED DECLARATION

20 (which includes a Garage), (ii) the respective undivided interest as tenant in common in the Condominium Common Area within the respective Lots as set forth in Exhibit B, (iii) the respective one-three-hundred-twelfth (1/312) interest as tenant in common in the Recreational Common Area, (iv) a Membership in the Association, and (v) any exclusive easements or easements appurtenant to such Unit upon the Restricted Common Area and such other easements as are applicable, all as described in the Declaration, in the deed to the Unit, or in the Condominium Plan. 3.4 Proportionate Undivided Interests Are Permanent. The undivided interests in the Common Area established in this Declaration are permanent and cannot be changed without the written consent of all of the Owners and of all First Mortgagees. 3.5 No Separate Conveyance of Undivided Interests. The undivided interests in the Common Area shall not be severed or conveyed separately from the, respective Units to which they are appurtenant and each such undivided interest shall in all cases be deemed to be conveyed or encumbered along with the respective Unit even though the description in the instrument of conveyance or encumbrance may refer only to the Unit. The Garage of each Unit shall not be severed or conveyed separately from the entirety of the Unit. Any purported severance or separate conveyance of an undivided interest in the Common Area apart from a conveyance of the respective Unit shall, for all purposes, be null, void, and unenforceable. 3.6 Limitation on Partition. Except as provided in Civil Code section 1359 (in the case of substantial damage to or destruction or obsolescence of the Development), there shall be no judicial partition of the Development or any part thereof, nor shall any Owner or any person acquiring any interest in the Development or any part of the Development seek any judicial partition thereof; provided, however, that if any Unit shall be owned by two or more co-tenants as tenants in common or as joint tenants, nothing contained in this Declaration shall be deemed to prevent a judicial partition by sale as between such co4enants. 3.7 Notice of Airport in Vicinity. This property is presently located in the vicinity of an airport, within what isknown as an airport influence area. For that reason, the property may be subject to some of the annoyances or inconveniences associated with proximity to airport operations (for example: noise, vibration, or odors). Individual sensitivities to those annoyances can vary from person to person. You may wish to consider what airport annoyances, if any, are associated with the property before you complete your purchase and determine whether they are acceptable to you. As provided by Civil Code Section 1353(a)(4), the preceding statement does not constitute a title defect, lien, or encumbrance. Bording & Well LIP 3240 Stone Valley Road West Alamo, California / Harbortown Homeowners 9 AMENDED AND RESTATED DECLARATiON

21 3.8 Notice of San Francisco Bay Conservation and Development Commission Jurisdiction. This property may be located within the jurisdiction of the San Francisco Bay Conservation and Development Commission. Use and development of the property within the commission's jurisdiction may be subject to special regulations, restrictions, and permit requirements. You may wish to investigate and determine whether they are acceptable to you and your intended use of the property before you complete your transaction. As provided by Civil Code Section 1353(a)(4), the preceding statement does not constitute a title defect, lien, or encumbrance. 3.9 Annexation. No property shall be annexed to the Development without prior approval of an two-thirds (2/3) of the Total Voting Power as to the principal terms of such annexation, including the principal terms of any. merger of the Association with one or more other entities incident to such annexation New Capital Improvements. The Board of Directors shall have the power and authority to provide for the construction, installation, or acquisition of new capital improvements upon the Common Area (as distinguished from the reconstruction or replacement of an existing capital improvement), provided that in any fiscal year expenditures for such new capital improvements shall not exceed seventy-five thousand dollars ($75,000) except upon the approval of a majority of the Total Voting Power Sale or Transfer of Association Property. The Board of Directors shall not in any fiscal year sell or transfer property owned by the Association having a value in excess of five percent (5%) of the budgeted gross expenditures of the Association for that fiscal year except upon the approval of a majority of the Total Voting Power Power to Sell, Transfer, or Pledge Recreational Common Area. The Board shall have the power to dedicate, sell, or transfer or to mortgage, pledge, or deed in trust as security for money borrowed, all or any part of the Recreational Common Area to any public agency, authority, or utility for such purposes and subject to such conditions as may be approved by the Members by the affirmative vote of at least three-fourths of the Members voting on such dedication, sale, or transfer, provided the number of Members attending the meeting in person or by proxy, or casting votes by written consent without a meeting, is sufficient to constitute a quorum as set forth in the Bylaws Custodian Unit. Upon the approval of a majority of the Total Voting Power, the Board shall have the authority to purchase a Unit (the "Custodian Unit") to be occupied by a resident custodian of the Development. In such case and during the time the Custodian Unit is owned by the Association: Berding & Well LLP 3240 Stone Valley Road West Alamo, California Harbortown Homeowners 10 AMENDED AND RESTATED DEcLARATION

22 (I) (ii) and No right to vote shall be exercised on behalf of the Custodian Unit; No Assessments shall be assessed or levied on the Custodian Unit; (iii) Each other Unit shall be charged, in addition to its usual Assessment, its share of the Assessment that would have been charged to the Custodian Unit, but for the provisions of this Section ARTICLE 4 COMMON AREA AND EASEMENTS 4.1 Use of Common Area Generally. Subject to the provisions of the Declaration, the Common Area shall be held, maintained, and used to meet the common interests of the Owners and the Residents, members of their household, tenants, and guests as provided in the Governing Documents. 4.2 Delegation of Use. Any Owner may delegate his or her rights of use and enjoyment, including easements, in the Development to the members of his or her household, tenants, Contract Purchasers, and guests, subject to the terms of the Governing Documents. The Board shall have the power to limit the number of an Owner's guests who may use the recreational facilities. It is the express purpose and intent of this Section 4.2 to limit the right of use and enjoyment of the Common Area to Residents of the Development and their accompanied guests. Upon the leasing or renting of a Unit, or upon occupancy of a Unit by a Contract Purchaser, the Owner shall be deemed to have delegated and assigned all such rights exclusively to the tenants or Contract Purchasers of such Unit. Any rights of enjoyment that have been delegated by an Owner are subject to suspension to the same extent that rights of Owners are subject to suspension as provided in the Governing Documents 4.3 Notice Regarding Household Members, Tenants, or Contract Purchasers. Each Owner shall notify the Secretary of the Association of the names of any tenants or any Contract Purchasers occupying such Owner's Unit. If requested by the Board, each Owner, tenant, or Contract Purchaser shall also notify the Secretary of the Association of the names of all members of his or her household to whom such Owner, tenant, or Contract Purchaser has delegated any rights of enjoyment in the Development as provided herein and the relationship each such person bears to such Owner, tenant, or Contract Purchaser. 4.4 Common Area Construction. Except as may be authorized by the Board, no person or entity other than the Association or its duly-authorized agents Belting & Well LLP 3240 Stone Valley Road West Alamo, CalIfornia / Harbortown Homeowners 11 AMENDED AND RESTATED DECLARATION

23 shall construct, reconstruct, refinish, alter, or maintain any improvement upon the Common Area, or shalt make or create any excavation or fill upon the Common Area, or shall change the natural or existing drainage of the Common Area, or shall plant, remove, or destroy any seed, plant material, tree, shrub, or other vegetation upon the Common Area. 4.5 Mechanic's Lien Against Common Area. In the event there shall be filed against the Common Area a notice of mechanic's lien for, or purporting to be for, labor or materials alleged to have been furnished or delivered for any Owner within the Development or his or her Unit, such Owner shall forthwith cause such lien to be discharged by payment, bond, or otherwise. If the Owner fails to cause the lien to be discharged, the Board may send written notice to the Owner specifying that unless the Owner causes the lien to be discharged within five (5) days from the date of such notice, the Board may cause the lien to be discharged. Within such five (5) day period, and notwithstanding any other provisions of the Governing Documents concerning notice or hearing, the Owner shall be permitted a hearing before the Board regarding the validity of such lien and any offsets or defenses thereto. At that time, the Board shall determine whether the lien adversely and improperly affects and encumbers the rights and interests of the Association or the other Owners. If the Board of Directors determines that the lien does adversely and improperly affect and encumber such rights and interests and that adequate protection of such rights and interests has not been provided, the Board may cause the lien to be discharged by payment, bond, or otherwise. The Board shall have the right to levy a Reimbursement Assessment against the Owner responsible for causing the lien to be discharged in an amount equal to all amounts paid by the Association together with interest thereon at the legal rate and all costs and expenses paid or incurred in connection therewith, including reasonable attorneys' fees. 4.6 Easements in General. In addition to all easements reserved and granted on the Condominium Plans or the Subdivision Map, there are hereby specifically reserved and granted for the benefit of the Units and Unit Owners in common and for each Unit and Unit Owner severally, and for the Association, as their respective interests shall obtain, the easements, reciprocal negative easements, secondary easements, and rights of way as particularly identified in this Article Easements for Restricted Common Area. The Restricted Common Areas are subject, as the servient tenements, to exclusive easements in favor of the Unit to which they are attached or assigned, as the dominant tenements, and such exclusive easements shall be appurtenant to each designated Unit. Berding & Well LIP 3240 Stone Valley Road West Alamo, California / Harbortown Homeowners 12 AMENDED AND RESTATED DECLARATION

24 4.8 Owners Non-Exclusive Easements Over Recreational Common Area. Every Owner of a Condominium shall have a non-exclusive easement of use of and enjoyment in, to, and throughout the Recreational Common Area of the Development, provided, however, such non-exclusive easements shall be subordinate to, and shall not interfere in any way with the exclusive Patio easements appurtenant to each Unit. Each such nonexclusive easement shall be appurtenant to and pass with the title to every Unit, subject to the following rights and restrictions: (a) (b) (c) (d) (e) The right of the Board to establish and enforce Rules governing the use of the Recreational Common Area and facilities thereon; The right of the Board to charge reasonable admission and other fees for the use of any facilities situated upon the Recreational Common Area; The right of the Board to suspend an Owner's right to use the recreational facilities as provided in Section 13.8; The right of the Board, subject to approval of the Members as set forth in Section 3.12, to dedicate, sell, or transfer Recreational Common Area or to mortgage, pledge, encumber, or otherwise hypothecate the Recreational Common Area and facilities thereon as security for money borrowed by the Association; and The right of the Association or its authorized agents, as provided in this Declaration, to perform its obligations under this Declaration, including obligations with respect to construction, maintenance, repair, or replacement for the benefit of the Common Area or the Owners in common. 4.9 Owners' Easements for Maintenance of Utilities. Whenever sanitary sewer, drainage, water, electricity, gas, television receiving, telephone lines or connections, heating or air-conditioning conduits, ducts, or flues are installed within the Development, which connections or any portion thereof lie in or upon Units or Condominium Common Area owned by other than the Owner of a Unit served by said connections, the Owner of any Unit served by said connections shall have the right, and are hereby granted an easement to the full extent necessary therefor, to enter upon the Units or Condominium Common Area or to have the utility companies enter upon the Units or Condominium Common Area in or upon which said connections, or any portion thereof, lie, to repair, replace and generally maintain said connections as and when necessary Owners' Right to Full Use of Shared Services. Whenever sanitary sewer, drainage, water, electricity, gas, television receiving or telephone lines or Berding & Well LU' 3240 Stone Valley Road West Alamo, California / Harbortown Homeowners 13 AMENDED AND RESTATED DEcLARATION

25 connections, heating or air-conditioning conduits, ducts, or flues are installed within the Development which connections serve more than one Unit, the Owner of each Unit served by said connection shall be entitled to the full use and enjoyment of such portions of said connections as service his or her Unit Easements of Encroachment. There shall be reciprocal appurtenant easements of encroachment as between each Unit and such portion or portions of the Common Area adjacent thereto and/or as between adjacent Units due to the unwillful placement or settling or shifting of the improvements constructed, reconstructed, or altered thereon in accordance with the terms of the Declaration; provided, however, that in no event shall an easement for encroachment exist if such encroachment occurred due to willful unauthorized conduct on the part of an Owner, a Resident, or the Association. In the event that any Unit is partially or totally destroyed and then repaired or rebuilt in accordance with the provisions of the Declaration, the Owners of each Unit agree that minor encroachments over adjoining Units and/or Common Area shall be permitted and there shall be easements for the maintenance of said encroachments so long as they shall exist Association's Utility Easements. Easements over and under the Development or any portion thereof for the installation, repair, maintenance, and replacement of electric, telephone, water, gas, and sanitary sewer lines and facilities, heating and air-conditioning facilities, cable or master television antenna lines, drainage facilities, walkways, and landscaped areas as shown on the Condominium Plans, and as may be hereafter required or needed to service the Development, are reserved by and shall exist in favor of the Association, together with the right to grant and transfer the same Power to Grant Utility Easements over Condominium Common Area. The Board shall have the power to grant and convey to any person or entity easements and rights of way, in, on, over, or under the Condominium Common Area for the purpose of constructing, erecting, operating, or maintaining thereon, therein, or thereunder overhead or underground lines, cables, wires, conduits, or other devices for electricity, cable television, power, telephone and other purposes, public sewers, storm water drains and water systems, sprinkling systems, water, heating and gas lines or pipes, and any similar public or quasi-public improvements or facilities, and not inconsistent with the purposes and interests of the Association, and each purchaser, in accepting a deed to a Unit, expressly consents thereto; provided, however, that no such easements may be granted if such easement would unreasonably interfere with the use, occupancy, or enjoyment by an Owner or Resident Herding & Well ELF 3240 Stone Valley Road West Alamo, CalIfornia Harbortown Homeowners 14 AMENDED AND RESTATED DECLARATION

26 of any Unit and any existing exclusive easements over Common Area appurtenant thereto, if any, without the consent of the Owner(s) affected. ARTICLE 5 USE RESTRICTIONS 5.1 Residential Use. Except to the extent permitted in Section 5.3, Units shall be occupied and used for residential purposes only. 5.2 Rental of Condominiums. Renting or leasing of any Condominium shall be subject to the provisions of Article Restriction on Businesses: Indemnification Regarding Businesses. No business of any kind shall be established, maintained, operated, permitted, or conducted within the Development except: facilities to the extent specifically authorized by statute. To the fullest extent permitted by law, every Owner or Resident who conducts or engages in any business, commercial endeavor, or profession within the Development, or whose tenant does so, agrees to and shall indemnify and defend the Association, its officers, directors, employees, and agents and shall hold them harmless from and against any cost, loss, claim, or damages of any kind, arising out of the conduct or presence of such activity, including but not limited to attorneys' fees, any claims for consequential damages, and any claims arising or alleged to arise out of the enforcement or nonenforcement by the Association of the Governing Documents, including but not limited to the restriction on business contained in this Section 5.3. Any amounts owed pursuant to this Section 5.3 may be assessed as a Reimbursement Assessment. 5.4 Offensive Conduct, Nuisances. Noise. No noxious, harmful, or offensive activities shall be conducted upon or within any part of the Development, nor shall anything be done thereon which may be or become a nuisance, or cause unreasonable embarrassment, disturbance, or annoyance to any Residents of the Development, or which shall in any way interfere with Residents' use of the Common Area and facilities thereon or the use and enjoyment of their Units or Units. Without limiting any of the foregoing, no Resident shall permit noise, including but not limited to the barking of dogs, to emanate from the Resident's Unit, which would unreasonably disturb another Resident's enjoyment of his or her Unit or of the Common Area. Each Owner and Resident shall comply with all requirements of all federal, state, and local governmental authorities and all laws, ordinances, rules and regulations applicable to his or her Unit and Unit. 5.5 Use of Common Area. All use of Common Area is subject to the Governing Documents. Without limiting the generality of the foregoing, no alterations or additions to the Common Area shall be permitted without the BoWing & Well ISP 3240 Stone Valley Road West Alamo, California / Harbortown Homeowners 15 AMENDED AND RESTATED DECLARATION

27 prior written approval of the Board; nothing shall be altered, constructed, placed, kept, stored, parked, planted on, or removed from the Common Area without the prior written consent of the Board; and the Common Area shall be kept free of rubbish, debris, and other unsightly or unsanitary materials. There shall be no obstruction of any part of the Common Area. Each Owner shall avoid causing any damage to the Common Area. 5.6 Conditions Affecting Insurance. Nothing shall be done, placed, or kept within the Development that will increase the rate of insurance or result in the cancellation of insurance under any insurance policy maintained by the Association, or which will be in violation of any governmental statute, ordinance, rule, or regulation. 6.7 Requirement of Architectural Approval. As addressed in Article 7 ("Architectural Approval"), construction, installation, modification, or alteration of buildings, outdoor structures, landscaping, and outdoor lighting are subject to prior approval of the Board. 5.8 Window Coverings. All window coverings, including, without limitation, drapes, shutters or curtains visible from the street or Common Areas shall be white, beige, off-white or natural wood. Windows shall not under any circumstances be painted or covered by foil, cardboard, or other similar materials. 5.9 Sports Apparatus. No basketball standards (including so-called portable basketball standards) or fixed sports apparatus shall be placed upon or attached to any portion of the Development without prior written approval of the Board Mailboxes and Exterior Newspaper Tubes. Mailboxes shall comply with all applicable postal regulations and Architectural Rules, if any. There shall be no free-standing exterior mailboxes or newspaper tubes Outside Drying and Laundering. No outside clothesline or other outside clothes washing, drying, or airing facilities shall be maintained in the Development Satellite Dishes and Antennas. No outside mast, tower, pole, antenna, or satellite dish shall be erected, constructed, or maintained on the Common Area including the outside of any Unit, except (i) those erected, constructed, or maintained by the Association, (ii) those expressly approved by the Board or the Architectural Committee, (iii) those initially installed during the approved construction of the buildings, or (iv) as specifically permitted by law. It is the intention of this Section 5.12 to restrict outside masts, towers, poles, antennas, and satellite receivers or Berdln9 & Well LLP 3240 Stone Valley Road West Alamo, California Harbortown Homeowners 16 AMENDED AND RESTATED DEcLARATION

28 transmitters in the Development to the fullest extent permitted by law and to authorize the Board to adopt and implement Rules regarding the same Animals Limitation on Pets. No animals shall be kept, bred, or maintained within the Development for commercial purposes. A reasonable number of common domestic household pets may be kept on each Unit. Reasonable numbers shall be deemed to limit the total number of all dogs, cats, and birds kept in a Unit to two (2). No pets shall be allowed in the Common Areas except as permitted by the Rules. While in Common Areas each dog must be restrained on a leash held by a responsible person capable of controlling it. The Board or any Owner may cause any unleashed dog found within the Common Area to be removed to a pound or animal shelter under the jurisdiction of the City of San Mateo, or the County of San Mateo, by calling the appropriate authorities, whereupon the dog's owner may, upon payment of all expenses connected therewith, repossess the dog Responsibility for Pets. The owner of each pet shall be responsible for immediately removing and disposing of any waste introduced to any portion of the Development by such pet Indemnification Regarding Pets. Each Owner, Resident, and any person bringing or keeping an animal within the Development shall be absolutely liable to the Association and all other persons for any injury or damage to persons or property caused by the animal brought upon or kept upon the Development by such person or by members of his or her household, tenants, invitees, or guests. To the fullest extent permitted by law, each Owner agrees to and shall indemnify and defend the Association, its officers, directors, employees, and agents and shall hold them harmless from and against any cost, loss, claim, or damages of any kind, arising out of or resulting from the presence or conduct of any animal brought upon or kept within the Development by the Owner, members of his or her household, tenants, invitees, or guests including but not limited to attorneys' fees, any claims for consequential damages, and any claims arising or alleged to arise out of the enforcement or nonenforcement by the Association of the Governing Documents, including but not limited to the restrictions on animals contained in this Section Any Berding & Weil LU' 3240 Stone Valley Road West Alamo, CalIfornia Harbortown Homeowners 17 AMENDED AND RESTATED DEcLARATION

29 amounts owed pursuant to this Section may be assessed as a Reimbursement Assessment Pet Rules. The Board may adopt and enforce pet Rules in addition to the provisions of this Section The Association shall have the right to prohibit the keeping of any animal which constitutes, in the sole and exclusive opinion of the Board, a nuisance to any person Trash Disposal. Trash, garbage, accumulated waste plant material, other waste and refuse, and recyclable waste shall be deposited only in containers provided for that purpose by the garbage collection service. Such containers shall be kept only in locations established and designated by the collection service or the Board, and shall be kept in a clean and sanitary condition. No Owner or Resident shall permit or cause any garbage, trash, or other waste or refuse to be kept upon any portion of any Unit or elsewhere in the Development, except in such containers. All equipment, woodpiles, or storage piles shall be kept screened and concealed from view of the Units, streets and Common Areas Signs, Banners, Flags. No sign, poster, banner, or flag of any kind shall be displayed to the public view from any portion of the Development except that this limitation shall not apply to: (a) (b) (c) (d) (e) (f) Signs required by legal proceedings; Noncommercial signs or posters no larger than 9 square feet in size and noncommercial flags or banners no larger than 15 square feet in size, displayed upon a Unit, and limited to the fullest extent permitted by Civil Code section ; A single sign of customary and reasonable dimension and design, complying with the provisions of any applicable ordinance and Association Rules and reasonably located on a Unit advertising a Unit for sale or rent; Other signs which by law cannot be prohibited; A flag of the United States subject to any city or county restrictions as to size and as to time, place, and manner of display; A single identification sign which has been approved by the Board located on a Unit identifying the number or address of the Unit and/or the names of the occupants; Berding & Well LU' 3240 Stone Valley Road West Alamo, CalifornIa Harbortown Homeowners 18 AMENDED AND RESTATED Association San Matco DEcLARATION

30 (g) (h) Signs required for traffic control and regulthion of streets or open areas within the Development; and Signs on the Common Area as approved by the Board for a purpose reasonably related to the affairs of the Association, including signs located at or near any entrance to the Development identifying the Development Vehicles. The following types of vehicles are prohibited within the Development except temporarily (maximum of 48 hours): trailer, camper, mobile home, recreational vehicle, engine-powered boat or watercraft and any boat or watercraft over fourteen feet (14') in length, golf cart or similar equipment (except any golf cart used by the Association for maintenance and related purposes), any commercial vehicle, or truck other than a standard size pickup truck. Permitted vehicles must be in operable condition and have current registration. No unregistered, dilapidated, inoperable, or abandoned vehicle shall be parked, kept, stored, or permitted to remain upon any area within the Development. The term "commercial vehicle" shall not include any two-axle passenger vehicle or pickup truck no larger than one-half ton capacity that is used for both business and personal uses, provided the vehicle in its normal operational configuration fits entirely inside the Resident's Garage and provided that any signs or markings of a commercial nature on such vehicle shall be unobtrusive and inoffensive as determined by the Board. No unreasonably noisy vehicle and no vehicle emitting foul smelling or offensive exhaust fumes shall be operated within the Development. No vehicles shall be constructed, reconstructed, or repaired (other than minor emergency repairs) within the Development Garage Parking. The primary parking facility for Residents of each Unit is the Garage that is part of the Unit. Each Garage shall be used only for parking permitted vehicles and shall not be used for other purposes, including but not limited to storage or hobby shop, which impede parking of the number of permitted vehicles the Garage was designed to accommodate. Residents are required to use the Garage to parking capacity before parking in unassigned Common Area parking spaces Common Area Parking. Parking in the Common Area is on a "first-come, first-served" basis and is allowed only in designated parking spaces. Common Area parking is restricted to vehicles of Residents, guests, and invitees such as delivery trucks, services vehicles,.or tradespeople while serving the Association or the Residents, and is subject to the Board's power to adopt Parking Rules Parking Enforcement. The Board shall have the power and authority to adopt, promulgate, and enforce Parking Rules and shall have the power to Berding & Well LLP 3240 Stone Valley Road West Alamo, California ) Harbortown Homeowners 19 AMENDED AND RESTATED DEcLARATION

31 impose fines and other sanctions for violations of provisions of the Governing Documents relating to vehicles and parking. Subject to the provisions of applicable law, including Vehicle Code sections and , the Board shall have the power and authority to cause the towing, at the vehicle owner's expense, of vehicles which are parked within the Development in violation of any of the provisions of the Governing Documents. Costs incurred by the Association relating to the towing and/or storage of any vehicle parked in violation of any provision of the Governing Documents shall be assessed as a Reimbursement Assessment against the Unit Owner responsible or whose household member, Contract Purchaser, tenant, invitee, or guest is responsible for the presence of such vehicle Garages. Each Owner and Resident shall keep his or her Garage in a neat, orderly, sanitary, and safe condition: Each Garage door shall remain closed except during ingress or egress or when necessary to provide ventilation for individuals working in the area Lagoon Area Restrictions. No engine-powered watercraft and no watercraft over fourteen feet (14') in length shall be permitted in the portion of the lagoon that is owned by the Association and is part of the Recreational Common Area ("Lagoon Area"). No dogs shall be permitted in the Lagoon Area, and no garbage or waste shall be disposed of in the Lagoon Area. The Board may adopt additional Rules concerning the use of the Lagoon Area. ARTICLE 6 RENTING OR LEASING 6.1 Requirements for Renting. An owner renting his or her Unit shall: (a) (b) (c) do so pursuant to a written lease or rental agreement which shall expressly provide that its terms are subject to all of the provisions of the Governing Documents and that failure of the tenant, members of the tenant's household, invitees, or guests to comply with applicable provisions of the Governing Documents shall constitute a breach of the terms of such lease or rental agreement; provide the tenant(s) with a copy of the Governing Documents and any subsequent changes thereto; and notify the Board of the name of each tenant and of the members of the tenant's household. 6.2 No Transient Rentals. No Owner shall be permitted to lease his or her Condominium for transient or hotel purposes, which shall mean (a) rental Berding & Well LLP 3240 Stone Valley Road West Alamo, California Harbortown Homeowners 20 AMENDED AND RESTATED DECLARATION

32 for any period less than thirty (30) days or (b) any rental where the occupant of a Unit is provided customary hotel services such as room service for food and beverage, maid service, periodic furnishing of clean bed linen and towels, laundry service, and bellboy services. 6.3 Association As Third Party Beneficiary. Notwithstanding the failure of an Owner to comply with the requirements of Section 6.1, and whether or not it is so stated in a written contract or other agreement between such Owner and such tenant, the Owner and the tenant of any Unit subject to this Declaration shall be conclusively deemed to have agreed that the Association is an intended third party beneficiary to the contract between the Owner and the tenant; that failure of the tenant, members of the tenant's household, or guests to comply with applicable provisions of the Governing Documents shall constitute a breach of the terms of the contract between the Owner and the tenant; and that the Association shall have the right but not the obligation to enforce the contract and to pursue every remedy available under the contract, under this Declaration including but not limited to entering upon and taking possession of such Owner's Unit pursuant to Section 8.19 ("Assignment of Rents as Security for Payment"), or under the law This Section 6.3 shall apply to any tenancy commencing or extended or renewed after the date this Declaration is recorded. 6.4 Indemnification Regarding Tenant's Actions. Each Owner leasing or renting a Unit shall be strictly responsible and liable to the Association for the actions of such Owner's tenant(s) in or about all Units and Common Area and for each tenant's compliance with the provisions of the Governing Documents. To the fullest extent permitted by law, every Owner of a Unit that is occupied by persons other than the Owner pursuant to a rental agreement or lease or otherwise, agrees to and shall indemnify and defend the Association, its officers, directors, employees, and agents and shall hold them harmless from and against any cost, loss, claim, or damages of any kind, arising out of the conduct or presence of the occupants of the Unit upon the Development, including but not limited to attorneys' fees, any claims for consequential damages, and any claims arising or alleged to arise out of the enforcement or nonenforcement by the Association of the Governing Documents with respect to such occupants. Any amounts owed pursuant to this Section 6.4 may be assessed as a Reimbursement Assessment. ARTICLE 7 ARCHITECTURAL APPROVAL 7.1 Architectural Approval Required. No building, fence, hedge, wall, obstruction, balcony, screen, patio cover, tent, awning, carport cover, improvement or other structure of any kind, no outdoor lighting, no mast, Berding & Well LLP 3240 Stone Valley Road West Alamo, California / Harbortown Homeowners 21 AMENDED AND RESTATED DEcLARATION

33 pole, tower, antenna, receiver, or transmitter to the extent restricted by Section 5.12, and no landscaping shall be commenced, erected, painted, installed, or maintained within the Development, nor shall any exterior addition to or change or alteration therein be made, until the plans and specifications showing the nature, kind, shape, color, height, size, materials, and location of the same shall have been submitted to and approved in writing by the Board as to quality of workmanship and design, harmony of external design and location in relation to surrounding structures, topography, and finished grade elevation. The foregoing shall not apply to improvements made or constructed by or on behalf of the Association. 7.2 Interior Decorations. Except as provided in this Section 7.2, the requirement of prior approval shall not apply to decorating or redecorating the interior of the Unit. Prior approval shall be required for any change that may affect the structural integrity of the building in which the Unit is located such as removing, moving, changing, or creating any opening in a wall, or for any change in the plumbing, electrical wiring, heating and ventilating ducts or any other system that is part of the Common Area. Subject to the foregoing sentence, each Owner shall have complete discretion as to furniture, furnishings, and interior decorating of the interior of his or her Unit and shall have the exclusive right to paint, plaster, panel, tile, wax, paper, or otherwise refinish and decorate the interior surfaces of the walls, ceilings, floors, and doors bounding his or her Unit, and to substitute new finished surfaces for the finished surfaces existing on said walls, ceilings, floors, and doors, including, without limiting the generality of the foregoing, substitution of paint for paper or paper for paint, substitution of any types of panel for plaster or plaster for paneling, substitution of tile for paneling or paneling for tile, or substitution of wood for linoleum or tile or of linoleum or tile for wood provided that any change in flooring or floor covering must comply with the City of San Mateo Sound Transmission Code, and provided that window coverings shall be subject to the provisions of Section Architectural Committee. The Board may appoint an Architectural Committee consisting of three (3) Members of the Association, at least one of whom shall be a Director and all of whom shall serve at the pleasure of the Board. If an Architectural Committee is appointed, it shall review all requests for approval submitted in accordance with this Article 7 and provide recommendations to the Board concerning the same. The Board has the authority to accept, modify, or reject the Committee's recommendations and shall make the final decision on all requests for approval. The Committee shall also have such other duties and responsibilities as may be assigned by the Board. In the absence of a duly-constituted Architectural Committee, the Board shall perform the functions of the Committee. Berding & Well LLP 3240 Stone Valley Road West Alamo, CalIfornia / Harbortown Homeowners 22 AMENDED AND RESTATED DECLARATION

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